Carlsbad, CA - ViaSat, Inc. (Nasdaq: VSAT) reports record sales and earnings for its third quarter of fiscal year 2002, ended December 31, 2001. Sales for the quarter were $50.1 million compared to $43.1 million for the comparable quarter last year, a 16.2% increase.

Pro forma net income, which excludes the effects of acquisition charges (including amortization of intangibles and a charge for in-process research and development), was $5.2 million or $0.22 per share for the third quarter of fiscal year 2002, based on 23.4 million weighted average shares. This is a 44.4% increase over pro forma net income of $3.6 million or $0.16 per share for the third quarter of fiscal year 2001, based on 22.9 million weighted average shares.

Actual net income, which includes the effects of acquisition charges, for the third quarter of fiscal year 2002 decreased 11% to $2.4 million or $.10 per share compared to actual net income of $2.7 million or $.12 per share for the third quarter of the prior year. Included in the net income is a tax benefit resulting from revised estimates of R&D tax credits for prior and current years. This benefit should also favorably impact our fourth quarter results. We anticipate a higher effective tax rate in our next fiscal year due to the lack of a similar adjustment.

Sales increased 24.3% to $148.4 million for the nine months ended December 31, 2001, compared to $119.4 million in sales for the same period last year. Pro forma net income, which excludes the effects of acquisition charges, for the most recent nine months was $11.8 million, or $0.51 per share based on 23.3 million weighted average shares. This is a 13.5% increase over net income of $10.4 million or $0.46 per share for the first nine months of last year based on 22.4 million weighted average shares.

Actual net income, which includes the effects of acquisition charges, for the nine months ended December 31, 2001 decreased 21.1% to $5.6 million or $.24 per share compared to actual net income of $7.1 million or $.32 per share for the first nine months of the prior year.

At the close of the third quarter, ViaSat�s backlog of firm orders was $162.5 million. The total backlog, including options and Indefinite Delivery, Indefinite Quantity (IDIQ) contracts, was $243.6 million.

�Overall we are satisfied with our financial results for the quarter in a very challenging economic environment for telecommunications products in general and broadband satellite in particular�, said Mark Dankberg, chairman, president and CEO of ViaSat. �It is very difficult to predict near term broadband satellite market dynamics, but we believe there is underlying demand for high quality, affordable service to enterprise VSAT users, Direct To Home TV subscribers and commercial and private aircraft. During calendar year 2002 we envision balancing these broadband opportunities with the increasing market potential we anticipate for defense products and technologies and our new high speed VSAT network products for conventional satellites.�

Third Quarter Business Highlights

Some specific highlights from our third quarter and business updates follow:

• ViaSat was awarded two significant new contracts relating to information security products for defense applications, including a requirements contract with the Maryland Procurement Office to produce and deliver KIV-21 products and accessories. This is a multi-vendor award that has a three-year duration, no minimum buy obligation, and a maximum ceiling value of $300 million.
• The Comsat Laboratories products group currently has eight customers under contract for a total of 10 LinkStarTM hubs. LinkStar is a star-based, broadband VSAT system with a DVB-RCS based return channel for two-way, bandwidth-on-demand networking for satellite operators, service providers, ISPs, and enterprises. �This product is a prime example of what our dedicated development team can achieve,� said Dr. Benjamin Pontano, president of Comsat Laboratories. �Development began in December 2000, by September 2001 we were shipping product, and already have a solid installed base to work from.�
• ViaSat reached agreement and subsequently completed the acquisition of US Monolithics, LLC (USM) for approximately $30 million in cash and stock. USM is a designer of proprietary gallium arsenide millimeter wave Integrated Circuits (MMICs) with strong capabilities in the packaging and integration of subsystems including power amplifiers, block upconverters and entire transceivers, especially in complex high-frequency applications. USM is expected to improve ViaSat�s margins on existing product lines, as well as on large broadband opportunities that ViaSat is pursuing.
• Although selected in February 2001, this quarter ViaSat received an order from Boeing for the development and initial production quantities of the receive and transmit subsystem for the Connexion by Boeing broadband Internet and data communication service. Also during the quarter, ViaSat delivered initial production units to the venture, in support of two-way broadband demonstrations for their customers, including private aircraft owners and agencies of the United States government.

ViaSat produces advanced digital satellite telecommunications and wireless signal processing equipment for commercial and government markets. ViaSat has a full line of VSAT products for data and voice applications. ViaSat is a market leader in Ka-band satellite systems, from user terminals to large gateways for both geosynchronous and low earth orbit systems. Other products include network security devices, tactical data radios, and communication simulators. ViaSat has locations in Carlsbad, CA, and Norcross, GA, along with its Comsat Laboratories division based in Clarksburg, MD. Additional field offices are located in Boston, MA, the United Kingdom, Australia, Chile, China, and India.

Safe Harbor Statement

Portions of this release, particularly the �Third Quarter Business Highlights� section, may contain forward-looking statements regarding future events and are subject to risks and uncertainties. ViaSat wishes to caution you that there are some factors that could cause actual results to differ materially, including but not limited to: ViaSat�s ability to perform under existing contracts and obtain additional contracts, ViaSat�s ability to develop new products that gain market acceptance, changes in product supply, pricing and customer demand, changes in relationships with, or the financial condition of, key customers or suppliers, changes in government regulations, changes in economic conditions globally and in the communications markets in particular, increased competition, potential product liability, infringement and other claims, and other factors affecting the communications industry generally. ViaSat refers you to the documents it files from time to time with the Securities and Exchange Commission, specifically the section titled Factors That May Affect Future Performance in ViaSat�s Form 10-K. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements.

Comsat Labs and Comsat Laboratories are tradenames of ViaSat, Inc. Neither Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation. �Comsat� is a registered trademark of COMSAT Corporation.

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